21 Sep Be Careful Which Debts You Reaffirm

A tire company sent a reaffirmation agreement to me for one of my clients to sign. A reaffirmation agreement is a new contract to pay an old debt that is included in your bankruptcy filing.

I laughed when I saw who it was from but I laughed even harder when I discovered it was for a brake job done in 2003. The debt was charged off in 2004. The statute of limitations to sue on this debt expired more than a year ago. They must be crazy if they think I will have my client sign this agreement.

If you receive a reaffirmation agreement, always have your attorney review it before you sign the agreement. You don’t want to get back into debt for something that is clearly dischargeable in your bankruptcy.

Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.